IFC and United States

Partners in Private Sector Development
OVERVIEW
IFC,

amemberoftheWorldBankGroup,

isthelargest

global development institution focused on the private sector in emerging
markets. Working in more than 100 countries, IFC committed a record US$43 billion in own-accountparties

toinvestments

andmobilization

from

third

private companies and financial institutions in developing

countries in FY23. Over the last 10 years, IFC had a long-term cumulative committed investments of US$26.1 billion with
U.S. partners (of which US$18.9 billion own-account, and US$7.2 billion mobilization) spread across several sectors and regions.

IFC and the U.S. Private Sector
The U.S. is IFC’s largest shareholder and actively supports private sector development globally through a combination of coinvestment,

advisory

andblended

finance.

The U.S. government has provided important contributions to IFC

Private Sector Advisory Services with a historic focus on investment climate reform, private sector development, andsolar energy. Through its contributions to the International Development Association (IDA), the U.S. also provides blended
finance support to IDA via the IDA Private Sector Window, a mechanism that helps mobilize sustainable private sector
investment in the poorest and most fragile markets. The U.S. also actively supports the long-standing Global Agriculture
and Food Security Program (GAFSP) Private Sector Window through blended finance. The Development FinanceCorporation (DFC) is an important co-investment partner.
IFC also partners with U.S. companies that are interested in investing in emerging markets.

Over the last ten years,

IFC’s investment portfolio with U.S. clients and project sponsors has focused finance and insurance (32%), followed by funds(12%), and electric power (9%) among others. The U.S. also ranks first among countries in IFC’s syndicated portfolio,
with a committed exposure of US$1.6 billion from U.S.- based banks.

IFC’s Long-Term Investment Portfolio with U.S. Sponsors
As of June 30, 2023, IFC’s long-term investment portfolio with U.S. sponsors and projects sponsors amounted to US$26.1 billion.

Other sectors include chemicals; industrial & consumer products; professional, scientific &technical services; food & beverages; health care; textiles & apparel; and tourism services.

*The World Bank Group fiscal year runs from July 1 to June 30 of the following calendar year.

IFC and the U.S. Government
The U.S. is a key donor partner across multiple government agencies:•The Department of the Treasury is the World Bank’s primary government counterpart and a blended financepartner, including contributions to the GAFSP Private Sector Window and the Iraq Small Business Finance Facility.
•The United States Agency for International Development (USAID) provides grant financing in support of IFC’s
private sector advisory services and enabling environment programs, including IFC’s Scaling Solar Program and theInvest in Childcare Initiative.
•The U.S. International Development Finance Corporation (DFC) works with the IFC on risk sharing and coinvestments, including support for Ukraine’s cross-border trade through the Global Trade Finance Program and thestrengthening of Africa’s vaccine and pharmaceutical development through the Global Health Platform.
•The Millennium Challenge Corporation (MCC) provided IFC with a grant to implement the Solomon Islands
Tourism Investment Facilitation Project to support the country’ s tourism sector and generate economic growth.

Examples of Successful Cooperation
Horizon Capital Growth Fund IV
To support Ukraine's economic recovery and encourage investors amid a grave humanitarian andfinancial crisis, IFC invested US$30 million in Horizon Capital Growth Fund IV (HCGF IV) in September
2022, followed by an additional US$30 million in April 2023. HCGF IV is managed by Horizon Capital, aU.S. domiciled fund manager and the leading private equity firm in Ukraine and Moldova. The
partnership aims to support the tech industry and accelerate the growth of private equity markets inboth countries. IFC's contribution aims to unlock additional commitments, mobilize additional private
capital, and achieve its goal of raising $300 million. This investment is part of its US$2 billion Economic
Resilience Action (ERA) Program. Announced in December 2022 to address the immediate needs ofUkraine's private sector while ensuring access to critical goods and services.

Acajutla LNGIIn December 2019, IFC made an US$85 million-dollar investment in Energía del Pacífico (EDP) in El
Salvador , to develop the first integrated Liquefied Natural Gas (LNG) to Power project,. The greenfieldproject is majority-owned by Invenergy, a leading U.S. power developer, while the initial developer of theproject, Quantum Energy (U.S.), remains a minority shareholder. The DFC is a parallel lender to thisproject. The project will have a high development impact for El Salvador and the region, creating highquality jobs, diversifying the country’s energy matrix, reducing fluctuations, making electricity more
affordable and fostering long-term sustainable economic growth. Moreover, the Acajutla LNG Powerproject will have positive environmental effects by displacing carbon and oil-based energy generation,
thereby reducing CO2 emissions.

KMF Microfinance
In April 2018, IFC provided a senior syndicated loan of US$82 million equivalent in Kazakh tenge(Kazakhstan’s currency) to “KMF” LLC, a leading Kazakh microfinance institution established through
USAID grants by ACDI/VOCA, a U.S.-based NGO, to boost lending to micro and small enterprises,
including women entrepreneurs and customers in rural areas of Kazakhstan. The investment comprised asenior loan of $10 million for IFC’s own account and a Hedged A-Loan Participation (HALP) of up to $72
million for the account of leading international investors. It was the largest ever microfinance sector dealin Kazakhstan. IFC used the HALP, a syndication product allowing IFC to sell U.S. dollar participation in a
local currency-denominated loan, to provide KMF with much needed local currency financing to support
its growth, while protecting investors from currency risk.

CONTACT
Washington D.C.
Julie Earne, Senior Operations Officer
E-mail: jearne@ifc.org
IFC Partnerships

June 2023

Washington D.C.
Javier Lanza, Operations Officer
E-mail: jlanza@ifc.org
IFC Partnerships